Report Provides Private Retirement Savings Plan
Philadelphia – March 28, 2019 – State Sen. Art Haywood (D-Montgomery/Philadelphia) yesterday applauded the findings of Pennsylvania Treasurer Joe Torsella’s Private Sector Retirement Security Task Force to establish a state-managed private retirement savings plan.
“There are more than 2.1 million Pennsylvanians who do not have access to a workplace retirement savings plan,” Haywood said. “The Task Force has a solution.”
The Task Force unveiled its report and recommendations at a Capitol news conference yesterday.
Haywood, Torsella and Sen. Pat Browne (R-Lehigh) are developing legislation to create retirement savings plans for employees of companies that do not have private pension or retirement plans. Haywood said the bill will be introduced soon.
Haywood applauded “both Treasurer Torsella for his initiative in creating and working with the Task Force, producing strong recommendations and making retirement savings a priority; and Senator Browne for his leadership in helping to develop a plan that ensures access to retirement savings for those without workplace options.”
“More than two million working Pennsylvanians do not have access to a retirement savings program at work and 750,000 workers who do have access to a program at work do not participate. This has to change. If it doesn’t, Pennsylvania taxpayers will be the ones who have to cover their costs in retirement through long-term care and other public assistance programs,” said Sen. Browne.
“Senator Haywood and I will work together to introduce legislation that will provide for a private retirement savings plan for Pennsylvania workers whose employer does not offer a retirement plan. This ensures that all Pennsylvanians will have financial security when they retire.”
The Task Force report calls for legislation that would:
- create of an auto-IRA within the Treasury Department that includes automatic enrollment
- and tax free and low employee contribution levels
Molly Schenker, a social worker with no current retirement savings plan, said that as a millennial professional, “I fear my future will never include what my parents had before me—a home, a child and health insurance. If I were given the opportunity to start a retirement plan, I’d at least have an idea of what kind of goals I should be setting for myself.”
“As former Democratic Chair of the Aging and Youth Committee and as a member of the Finance Committee, I saw the challenges that hardworking individuals face when they have limited retirement savings,” Haywood said.
Haywood said that he expected a draft of the legislation that he is crafting along with Torsella, Senator Browne, and House members to be unveiled in the very near future.